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Mathematics, 30.04.2021 05:30 coolman12062

You decide to take out an insurance policy that will cover your home if an earthquake were to occur. The policy is $350 per year. In the case of an earthquake, the insurance company will repay you $225,000. The chances of an earthquake in your area is 0.02.
What is the expected value?

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You decide to take out an insurance policy that will cover your home if an earthquake were to occur....

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